illy Sustainable Value Report

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ILLY REPORT 2012

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ILLY REPORT 2013

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ILLY REPORT 2014

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ILLY REPORT 2015

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ILLY REPORT 2016

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ILLY REPORT 2017

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ILLY REPORT 2018

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SALGADO

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ETIOPIA SCUOLA

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Virgolino Adriano Muniz 1

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Virgolino Adriano Muniz 2

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Virgolino Adriano Muniz 3

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Lucia Carmen Lucia Chavez de Brito

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GONZALES

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Adolfo Vieira

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Thanks 4 the coffee (T4TC) 2016 sub eng

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Thanks 4 the coffee (T4TC) 2017 sub eng

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Thanks 4 the coffee (T4TC) 2017 sub ita

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Colombia

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Ernesto Illy International Coffee Award (EIICA) 2017

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DOWNLOAD AREA

IDENTITY

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FINANCIAL CAPITAL

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PRODUCTION CAPITAL

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HUMAN CAPITAL

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INTELLECTUAL CAPITAL

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RELATIONAL CAPITAL

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NATURAL CAPITAL

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ILLY VALUE REPORT 2018

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CODE OF ETICS

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ILLY SUSTAINABILITY POLICY

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Methodological note

illycaffè has been publishing its annual Sustainable Value Report since 2012, to describe and convey clearly the idea that economic, social and environmental sustainability is a key factor in the company’s decision-making processes, strategies and business model, in keeping with the expectations of all the stakeholders that, directly or indirectly, are affected by its business. Moreover, the Sustainable Value Report is designed to communicate a responsible approach, involving sustainable behaviors, practices and products that the company has adopted over the years.


Guidelines and Reporting Process

The 2017 Sustainable Value Report has been prepared in accordance with the “Sustainability Reporting Standards” issued by the Global Reporting Initiative (GRI), at the “In accordance-Core” level.

The Sustainable Value Report was prepared with the active involvement of all the various departments operating at illycaffè’s headquarters and the competent areas of the affiliates. The reporting process is based on the company’s information systems – operations management, accounting, quality, environment, internal audit, safety, personnel management, etc. – and the use of specific instruments to gather and analyze data. The company’s objective is to strengthen further its reporting system, to extend it progressively to all the activities and to enhance the accuracy and reliability of the information provided. Even though it does not fall within the scope of the Barnier Directive 2014/95/EU, on the disclosure of non-financial information and information on diversity, illycaffè chose to prepare its annual non-financial Report on a voluntary basis, given the relevance of the themes addressed therein for its stakeholders. illycaffè’s 2017 Sustainable Value Report has been audited by DNV GL Business Assurance Italia S.r.l.
A copy of the assurance statement is available at the following link following link.


Scope of Report

This Report does not include data and information relating to companies with fewer than 3 employees, given the limited impact of these organizations (with respect to illycaffè as a whole) in environmental, social and economic terms (with reference to the five areas of Legislative Decree 254/2016), due to their sales, employees and, especially, the type of activity. In fact, these are representative offices, performing mainly administrative tasks.
At December 31, 2017 the Group consisted of the companies shown in the chart, while the companies included in the scope of the 2017 Sustainable Value Report are indicated separately.


Contacts

For comments, requests for information, suggestions and ideas for improvement regarding the sustainability activities of illycaffè and issues related to the content of the present Value Report, please e-mail: valuereport@illy.com

GRI charts

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illy Sustainable Value Report

CONTACT US

If you have any further questions or comments regarding sustainability, we would be happy to provide information about our vision, as well as about our specific objectives and targets.


illycaffè S.p.A.
Via Flavia 110, 34147 Trieste - Italy

valuereport@illy.com

HIGHLIGHTS 01
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Identity

Key numbers of illycaffè

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144

countries in which illycaffè operates

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100.000

about 100,000 point of sales serving illy espresso

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259

point of sales:179 illy Caffè, 17 of which are direct-run and 80 illy shops, of which 6 are directly managed

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37

new mono-brand stores opened in 2018

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1.294

the number of worldwide employees

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483

million Euros: total sales in 2017

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5

specialized laboratories

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27.061

attendees in 2018

HIGHLIGHTS 02
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The history of illycaffè and the stages of sustainability

1932

THE FIRST PATENT

Submission of the application to patent in Italy the process of pressurization (released in 1934). The patent has been released in Germany, in 1933.

1933

ILLYCAFFÈ

Francesco Illy founds illycaffè.

1934
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ILLETTA

Francesco Illy invents “Illetta”, the prototype modern coffee machines, and the pressurization process: a revolutionary method for preservation of food.

1965
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THE HEADQUARTERS IN TRIESTE

illycaffè inaugurates the head office in Trieste and the first laboratory site. The Headquarter in Trieste is presently still the only production plant of illy worldwide.

1974
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COFFEE POD

First company in the world to launch in the market coffee pods for the preparation of cafè-like high quality coffee, also for domestic use.

1988

DIRECT TRADE MODEL

illycaffè starts a direct contact with its growers to purchase coffee, stimulating quality improvement through economic surplus.

1991
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PRIZE FOR QUALITY COFFEE

First Edition of the illy Prize for Quality Coffee in Brazil. Since its first edition, the Prize initiative has been always coordinated by Anna Illy.

1992
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ILLY ART COLLECTION

The illy Art Collections are created, an artistic reinterpretation of the white espresso cup designed by Matteo Thun.


QUALITÈ FRANCE

illycaffè obtains the Certification “Qualit. France” (issued by Qualit. France SAS) for the high sustainability and quality of the illy products.

1996
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THE LOGO

World-renowned artist James Rosenquist creates the new icon for the illy logo.


ISO 9001

illycaffè is the first coffee company in the world to be certified under the ISO 9001 framework for the quality management system.

1997
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AROMALAB

Aromalab is the laboratory created by illy to foster the research on the chemistry of coffee with the intent to identify chemical compounds able to build up the aroma of blends of coffee and to evaluate the quality of green coffee and roasted coffee.

1999
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WATER AS PRIMARY GOOD

illycaffè improves the techniques of cultivation and coffer process obtaining as result the reduction of water consumption up to 90% per kg of green coffee.


UNIVERSITÀ DEL CAFFÈ

illycaffè creates the Università del Caffè (University of Coffee), a center of excellence to foster the promotion and dissemination of knowledge on the culture of quality coffee, from the bean to the cup.

2002
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PROJECTS IN GUATEMALA

illycaffè launches a new programme in Guatemala to foster Micro- Entrepreneurship and training of coffee growers.


SENSORYLAB, TECHLAB AND BIOLAB

illycaffè creates three new laboratories to carry out research on all the possible issue related to coffee.

2003

ESPRESSAMENTE ILLY

illy inaugurates the opening of a chain of franchised cafès, to let people experience and appreciate the genuine taste of the Italian-Style cafès worldwide.


ISO 14001 ENVIRONMENTAL CERTIFICATION

illycaffè obtains the release of a new certification for high efficiency of environmental management system and for the control of the environmental impact of the industrial process.


LOW EMISSION ROASTING FACILITY

illycaffè introduces a new roasting facility in Trieste, based on a novel system with ultra-low emission of fumes during the coffee toast process.

2004
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EMAS ENVIRONMENTAL CERTIFICATION

illycaffè continues the efforts to improve environmental impact in cooperation with EMAS in order to foster increase of environmental efficiency of industrial activities.


ERNESTO ILLY SCIENCE PRIZE

In occasion of the candidacy of Trieste for the Expo 2008, illy started a cooperation with TWAS - The Academy of Sciences for the Developing World, launching a Science Prize dedicated to researchers from developing countries.

2005
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EMAS AWARD

illycaffè committment to the improvement of environmental impact of industrial processes is recognized at international level: the Company is awarded by EMAS for continually improving environmental standards.


INITIATIVES IN ETHIOPIA

Through the support and endorsement of the International Coffee Organization, illycaffè launches a project in Ethiopia in cooperation with the United Nations aiming to demonstrate that, upon treatment after harvesting, the quality of Ethiopian Coffee can be comparable and competitive with the best coffee blends in the world.


BRC - BRITISH RETAIL CONSORTIUM

illycaffè obtains the BRC (British Retail Consortium) certification and implements its commitments in the certification of safe food and products.


FOOD SCIENCE LAB

illycaffè founds the Food Science Lab, a laboratory dedicated to the study of food and of consumable products based on coffee.

2006
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IPERESPRESSO

illycaffè launches in the market the new system of coffee capsules, called “Iperespresso”.

2007
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IFC CERTIFICATION

illycaffè obtains the IFS (International Food Standard) certification, confirming the commitment of the company to ensure high quality of standards for food safety.

2008
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ILLY ISSIMO – READY TO DRINK

illy issimo is launched on the market: it is a new ready-to-drink line of espresso-style coffee beverage and it is the result of a joint venture with The Coca Cola Company.


FONDAZIONE ERNESTO ILLY

The Foundation is created in honor of Ernesto Illy in order to give continuity to the teachings and knowledge of Ernesto Illy, to whom the Foundation is dedicated.


OXFORD UNIVERSITY

In cooperation with the Environmental Change Institute of the Oxford University, illycaffè supports a research project on the sustainability of coffee cultivation and production.


AWARD IN BRAZIL

illycaffè launches in Brazil the “Sustainable Conduct Award” initiative, a prize dedicated to coffee growers reaching high sustainability standards.


ATLANTIC RAINFOREST IN BRAZIL

illycaffè starts a partnership with Istituto Terra (Earth Institute) for a reforestation intervention in a large area of the Atlantic forest region of Brazil.

2010
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ISO 17025

AromaLab and SensoryLab of illycaffè are recognized and accredited by Accredia – Italian Accreditation System.

2011
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ILLYSHOP AND ILLYTECA

Creation of illyshop and illyteca: they are single-brand boutique shops offering the entire catalogue of illy products commercially available. Moreover, ILLYTECA is a retail point, in which are available all the products, technologies and accessories with the brands of the five shareholders of illy Group.


RESPONSIBLE SUPPLY CHAIN PROCESS

illycaffè is the first company in the world to be awarded with the certification for the "Responsible Supply Chain Process".

2012
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1° SUSTAINABLE VALUE REPORT

illycaffè launches a communication initiative addressed to all its stakeholders: the initiatives underlines and fosters the commitment of all the parties involved to the implementation of the sustainability concept.


GLOBAL COMPACT

illycaffè becomes part of the United Nations Global Compact.


CARBON FOOTPRINT

In collaboration with the Italian Ministry of the Environment, illycaffè launches a project to estimate its carbon footprint over the entire lifecycle of its industrial process initiative.

2013-2015
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WORLD MOST ETHICAL COMPANY

illycaffè is the only Italian enterprise selected to be included in the list of the most ethic enterprises in the world for the year 2013, on the basis of the Etisphere Institute, the organization which yearly finalize the list.

2015
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EXPO 2015 OFFICIAL COFFEE PARTNER

illy has been selected by the Steering Committee Expo as Official Coffee Partner: illy is the exclusively responsible in charge for the Coffee Cluster of the Exhibition, with the responsibility to formulate and manage the content and event of the cluster, hosting and valorizing the participation of the ten countries representing the coffee producers in the world. The selection of illy to cover this prestigious role is a recognition for the company to be driven by excellence, passion, innovation and commitment to sustainable development.

PUBLIC-PRIVATE PARTNERSHIP WITH UNDO

In collaboration with UNIDO, illycaffè works on the project "Improving the Sustainbility and Inclusiveness of the Ethiopian Coffee Value Chain through Private and Public Partnership" to develop the entire Ethiopian coffee industry.


PARTNERSHIP WITH SENA IN COLOMBIA

illycaffè has signed a declaration of intents with SENA - Servicio Nacional de Aprendizaje, a national government institution that oversees labor training – to start a cooperation project with the objective to transfer knowledge and good practices on coffee production and preparation, to the benefit of producers and consumers.

2016
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ERNESTO ILLY INTERNATIONAL COFFEE AWARD

An award is created for the best coffee selected from the ones grown in the regions that make up the unique illy blend and it involves all farmers the company works with. It is also a tribute to Ernesto Illy, a visionary leader, always interested in scientific research.

2017
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WORLD’S MOST ETHICAL COMPANY

illycaffè recognized as the World’s

Most Ethical Company, for the sixth consecutive year.



NEW GOVERNANCE AND SUSTAINABILITY POLICY

illycaffè’s commitment in the area of sustainability takes shape through a new Governance and Sustainability Policy consistent with the SDGs set out by the United Nations.

2017

COLLABORATION WITH SENA FOR THE PACE ACCORD IN COLOMBIA

The collaboration with the SENA - Servicio Nacional de Aprendizaje, Colombia’s national public institution is extended and included in the peace agreement between the ex Farc and the Colombian Republic, in which illycaffè holds training sessions, in areas previously part of the civil war, directed to the victims of the conflict, to the former fighters who are re-entering civilian life, women’s associations of coffee producers and teachers of rural schools, whose training program includes a form dedicated entirely to the production of quality coffee.

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Mission, Vision and Values

MISSION

To delight all those people, throughout the world, who cherish the quality of life and beauty, through the best coffee nature can provide, enhanced by the best available technologies and by art.

VISION

Our objective is to become a worldwide reference point in the culture and excellence of coffee: an innovative company offering the best products together with the best locations to enjoy them, thereby becoming a leader in the top-quality sector.

VALUES

illy is a stakeholder company with the intention of improving the quality of life through ethics and excellence. Therefore, the fundamental values are:

Excellence. A passion for quality, beauty and continuous improvement.

Ethics. The creation of long-term value through transparency, sustainability and personal growth.

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Sustainability Strategy and Management

The search of perfection is the principle that inspires illycaffè, stated through two fundamental values: the passion for excellence, understood as a love for beauty and well done and ethics, that is, the creation of value in the long term through sustainability, transparency, the development of people, creating value, fostering social growth and respecting the environment. illycaffè is a stakeholder company that pursues the improvement of the lives of its stakeholders through economic, social and environmental sustainability.

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SOCIAL

illycaffè pursues social sustainability through the growth, in the sense of knowledge and self-realization.

ENVIRONMENT

illycaffè pursues environmental sustainability through the respect which translates into the principles of not polluting, not wasting and using renewable resources.

ECONOMIC

illycaffè pursues environmental sustainability through the creating shared value with all its stakeholders.

The hierarchy of the company’s stakeholders can be seen as an inverted pyramid, where consumers are placed at the top, followed by customers, which are the company’s partners in serving consumers; talents, who work with passion and professionalism, rank third while suppliers, which provide an excellent product, are on the next level below; the communities with which illycaffè develops relationships and the shareholders, who serve the company, sit at the bottom levels.

Consumers

Clients

Collaborators

Suppliers

Communities and institutons

Shareholders

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The supply chain

illycaffè manages its entire coffee supply chain in terms of sustainability. This approach is certified by a third-party and independent entity through the Responsible Supply Chain Process.

Chain tracked
and guaranteed

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HIGHLIGHTS 06
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Human rights

illycaffe’s commitment to advance respect for human rights translated into a number of initiatives over the years, including:

  • Adherence to the principles of the ILO - International Labor Organization.
  • Certified Responsible Supply Chain Process.
  • Definition of the Sustainability Policy to describe illycaffe’s values, objectives, commitments and governance on sustainability.
  • Adherence to the Global Compact of the United Nations since 2012. Thanks also to these instruments, the company is committed to promoting a behavior both responsible and respectful of human rights and to monitor any discriminations against employees. No reprehensible practices or violations were reported.
  • Also in 2018 the Ethisphere Institute included illycaffe in the list of the World’s Most Ethical Companies. This is the sixth consecutive year that the company has received this recognition, which is evidence to its effort in advancing ethical standards and practices.
HIGHLIGHTS 06
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Responsible supply chain process

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illycaffè is the first company in the world to have obtained the ’Responsible Supply Chain Process’ Certification in March 2011, which assigns a crucial role to quality and value creation for stakeholders throughout the green coffee chain. The RSCP certification attests that illycaffe:

Adopts a direct approach in purchases and traceability to the producer, save for institutional barriers, such as the ECX market in Ethiopia, through which Ethiopian coffee transactions have to pass, a system that is changing and which today allows greater traceability of the product.

Transfers to the green coffee supply chain knowledge for the constant improvement of the product’s quality and sustainability.

Guarantees a higher-than-market price to reward growers for the superior quality produced.

AREA
THEME
ENVIRONMENT
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  • Use of soil
  • Water withdrawal
  • Quality of water
  • Impacts on local community
  • Biodiversity
CONDITIONS
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  • Agronomic practices utilized
  • Equipment used in the production phase
  • Working conditions
  • Risk of accident or injuries
  • Capacities and competencies of workers
PRODUCTS
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  • Use of active principles in accordance with Integrated Farming
  • Agronomic and post-harvest practices utilized
  • Equipment used in the production phase and working conditions
  • Hygiene

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HIGHLIGHTS 01
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FINANCIAL CAPITAL

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+2,5%

Value of Production on 2018

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439

million - Economic Value Distributed, at December 31, at a consolidate level

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+5%

Volume sales compared to 2017

HIGHLIGHTS 02
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Economic results

To calculate the economic value that the business generated and distributed to a number of important stakeholder groups, illycaffe uses the consolidated Economic Value Distributed metric which, at December 31, 2018, amounted to €439.07 million, 0,11% higher compared to 2017.

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HIGHLIGHTS 02
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THE FINANCIAL CAPITAL

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PRODUCTION CAPITAL

HIGHLIGHTS 01
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4.500

green coffee samples analyzed in illycaffè’s laboratories

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55.000

roasted coffee samples analyzed in illycaffe’s laboratories in 2017

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575

average daily tastings to ensure the product’s quality

HIGHLIGHTS 02
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production capital

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Human capital

illycaffè people

illycaffè recognizes the central role of people, who are strategic stakeholders, and the importance of maintaining transparent relationships based on mutual loyalty, trust and on the application of the principles of the Ethical Code adopted by the company.

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13% in North America

3% in South America

20% of the personnel is employed in other companies with headquarters in Europe

About 59% of the personnel is employed in the Italian companies of illycaffè (61% in 2015)

5% in Asia

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the relational capital

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intelectual capital

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28

Università del Caffè branches operating worldwide

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270.579

people trained since 2000

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6

million euros invested in Research & Development

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329

patent securities, 261 of which were granted and 68 pending

HIGHLIGHTS 02
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The innovations introduced in recent years: products

2005
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IPERESPRESSO CAPSULES

It is the third-generation espresso system: protected by 5 international patents, with the help of the two infusion and emulsion phases, it allows you to make coffee with a dense, velvety and persistent cream in restaurants or at home.

2007
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X2

The first profeSsional Ho.Re.Ca. with boiler, using Iperespresso capsules.

2008
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Idillyum

The first type of mono-variety coffee with a low level of natural caffeine, possessing an unique sensorial and refined scent.


ILLY ISSIMO /READY TO DRINK

A ready-to drink product for the consume out of home. Without additive colorants and preservatives, illy Issimo is the result of the cooperation between illy and The Coca Cola Company and offers the possibility to enjoy the best quality coffee in the form of a chilled beverage ready to drink.

2009
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ILLYCREMA

Frozen soft ice-cream produced with espresso illy 100% Arabica coffee and ice micro-crystals, without hydrogenated fats, colorants or preservatives.

2010
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X7.1

X7.1 is the evolution of the X7 model, using boiler technology in compliance with the norms relevant to the emissions of heavy metals.


Y1

Home machine coffee maker using Iperespresso capsules, made of aluminum and glass, equipped with an automatic system for the expulsion of capsules. Working upon thermic control and electromechanical commands.

2011
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X2.1

Evolution of the X2 model, equipped with, with thermo-block technology and in compliance with the norms relevant to the emission of heavy metals.


Y1 TOUCH

Y1 touch, an evolution of the Y1 with soft-touch control panel and electronic management.

2013
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Y5

New Iperespresso home coffee machine with automatic drain, an extension of the “Y” series.


X7.1

Limited edition in fluorescent colors, designed for the Christmas seasonal campaign of 2013.

2014
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REFILLY / SOFT CAN

The refill for the home fits inside the 250-gram can and is designed to reduce its environmental impact.

2015

MOKA PULCINA

Pulcina is a revolutionary moka coffeepot combining the technology developed by illycaffè with the design experience of Alessi. Thanks to the internal shape of its special boiler, Pulcina automatically stops dispensing the coffee with precision timing, thus avoiding the minor eruptions in that final stage of extraction that can leave a burnt, bitter aftertaste, and ensuring that the coffee emerges at its best, with the full rounded aroma intact.


YP1

The new professional YP1 machine developed by illy and Cimbali grinds perfectly, espresso after espresso, thanks to Bluetooth technology: it checks the time it takes to dispense the coffee, and if necessary, sends a reminder to the Conik grinder to correct it. The technology uses 25% less electricity than the previous model.


PERSONAL BLENDER

The prototype was presented in the Coffee Cluster at Expo Milano 2015 and today is used to create the personal blends of Michelin-starred chefs. The machine allows you to create a tailor-made blend from the 9 origins of the only illy blend.

2016

COLD BREW SYSTEM

Ground coffee to be infused in water.


PILLOW PACK

Pods in filter paper for drip-coffee preparation.

2017

Y5 DRS ESPRESSO
& COFFEE SYSTEM

The coffee machine that people controls from the smartphone via Bluetooth and that allows the automatic reordering of capsules through Amazon Dash technology.

2018

SISTEMA COLD BREW AIR/FLAT

Grazie al sistema di spillatura brevettato illy Cold Brew può essere gustato sia nella versione liscia con ghiaccio che in quella illy Cold Brew Aria, con soffice schiuma persistente ottenuta in modo del tutto naturale senza aggiunta di altri ingredienti.


ARABICA SELECTION

Presentata la gamma delle origini più distintive dei caffè Arabica che compongono il blend illy, provenienti da Etiopia, Colombia, Brasile e Guatemala. Proposte in purezza e su una scala di intensità da più delicata a più decisa, ogni origine ha una curva di tostatura dedicata, per esaltarne le note aromatiche peculiari e il gusto distintivo delle terre del caffè.

2019

CAPSULE IN ALLUMINIO

Presentata la nuova linea di capsule* in alluminio compatibili, frutto di un accordo di licenza siglato con JAB.

* Compatibili con molte macchine per caffè Nespresso®.

The innovations introduced in recent years: projects

2005

ESPRESSO COFFEE

illycaffè contributes to the second edition of the scientific book dedicated to espresso.

2014

COFFEA ARABICA SEQUENCING

Concluded the sequencing of the genome of Coffeea arabica, thanks to a partnership led by illycaffè and Lavazza, in collaboration with the Institute of Applied Genomics, IGA Technology Services, DNA Analytica and the Universities of Trieste, Udine, Padua and Verona.

2017

BREEDCAFS

Study on the relationship between coffee and climate change.

2018

WORLD COFFEE RESEARCH

It makes the reconstruction of the genome of Coffea arabica available on its website (worldcoffeeresearch.org/genome).


PROLIFIC

illycaffè joins the PROLIFIC project, for the development of new products taking into account the circular economy principles.

HIGHLIGHTS 02
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The University of Coffee

The University of Coffee represents a center of excellence created to promote, foster and disseminate the culture of high-quality coffee worldwide. The University of coffee was founded in Naples in 1999. In 2002, the campus was moved to Trieste, to the illycaffe headquarters. The educational activities of the University of coffee have been created to allow all professionals involved in the supply chain to grow and improve the quality level of every single phase in the various segments in which they operate. A virtuous circle of knowledge destined to create value over time through growth, sustainability and transparency, broadening the scope of intervention, from the relationship with professionals to the direct sharing with the end consumer.

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THE INTELLECTUAL CAPITAL

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RELATIONAL CAPITAL

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illycaffè and communities

Several projects for the promotion and development of initiatives with a strong social impact in the producing countries.

- Since 2015 illycaffè has been working with SENA– Servicio Nacional de Aprendizaje, a national government institution that oversees labor training – with the aim to transfer knowledge and good practices on coffee production and preparation, to the benefit of producers and consumers. In areas previously part of the civil war, illycaffè proposes training sessions for the victims of the conflict, former fighters who are re-entering civilian life, women’s coffee associations and school teachers rural areas. In 2018 illycaffè signed a memorandum of understanding with the ETCR (Territorial Spaces for Training and Reintegration) and Ascafé (Association of Small Coffee Farmers) to increase the quality and capacity of coffee production in the department of the Cauca where former FARC fighters and small producers reside, encouraging local economic development. More than 600 former FARC fighters are present in the four ETCR zones who will benefit from the benefits described in the memorandum. 

- Thanks to the company project "Author’s Notes", illycaffè supports the children of coffee pickers in Honduras, by building the school "Vicente Matute". In collaboration with the Cohondu Foundation, the building is the new example of support for the Honduran coffee community: at the end of 2017, illycaffè sponsored the construction of another school in the area of Belén, in the region of Lempira, benefited 105 families. The company’s decision to intervene with these projects, in two of the poorest regions of the country, follows the principle of creating value for all the actors involved along the production chain, always paying close attention to aspects related to education. 

- In 2016 illycaffè established the Ernesto Illy International Coffee Award to recognize and celebrate producers of the best sustainable-quality Arabica in the world, stressing the importance of working hand in hand with them, to continue to pursue the company’s dream of being purveyor of the world’s best coffee. illycaffè’s quality control in Trieste picks the best 27 coffee lots (first, second and third) from among the harvests of the coffee season just ended in the 9 countries that contributed to the formation of illy’s unique blend. An international jury then selects and presents an award to the best coffee (Best of the Best) of the 9 winning lots of every country. The Ernesto Illy International Coffee Award is also an opportunity for the 27 finalists from the producing countries and their teams to meet and to live a unique experience, which includes also an ad hoc workshop devoted to scientific, socio—economic and sustainability issues in the world of coffee, with top-tier international speakers.

- With institutional support from SENA (Servicio Nacional de Aprendizaje), last year 4 training sessions were held to address the optimization of production activities in the mill (“finca”), considering the peculiarity of Colombia’s socio-political context after 53 years of civil war (the 113 participants, in fact, belong to groups of victims of the civil war and ex guerrilla fighters). Participants included also women producer associations and teachers in rural school, with modules devoted entirely to the production of quality coffee. The inclusion of these teachers is particularly important, as the ultimate objective is to support a local project designed to include the new generations in the coffee sector, to reduce school dropout rates and the resulting child labor, through a practical handbook.

HIGHLIGHTS 02
illy Sustainable Value Report

Clients and served markets

illy customers and consumers are offered a unique 100%-Arabica coffee blend, the result of a series of selection and processing steps that protect and enhance quality.

illycaffe bases its customer relations on satisfaction, to create long-term ties through the provision of quality products and services.

illy Sustainable Value Report

illycaffe’s products are distributed mainly through the following business units:

illy Sustainable Value Report

Business to Business (B2B)

illy Sustainable Value Report
  • Ho.Re.Ca: Hotels, Restaurants, Cafès
  • Traditional retail outlets
  • Supermarkets
  • Consumer electronics
  • Vending (offices and workplaces)
illy Sustainable Value Report

Business to Consumer (B2C)

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  • illy Shops
  • illy Caffè and espressamente illy
  • e-commerce

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the relational capital

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HIGHLIGHTS 01
illy Sustainable Value Report
illy Sustainable Value Report

natural capital

Product disposal and recyclable packaging

illycaffe is increasingly sensitive to circular economy – which has become a key theme for the company and its stakeholders – as it is planning and implementing innovative solutions to make the disposal and disassembly of products as efficient as possible in environmental and social terms, through an approach typical of such concept.

REDUCE

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In the design phase consideration is given to packaging and packing materials that are lighter, low consumption, possibly recycled or recyclable and environment-friendly throughout their lifecycle.

REUSE

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For secondary packaging material, the company tends to purchase recycled materials that, on average, represent 80% of the paper and paperboard used and 100% of pallets used.

Recycle

illy Sustainable Value Report

Preference is given to recyclable packing materials, which are designed on the basis of, and made with, non-composite materials (metals or plastics).

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illy Sustainable Value Report

Sustainable agriculture and biodiversity

illycaffe integrates environmental responsibility principles into its modus operandi and into the management of its raw materials, especially green coffee.

illy Sustainable Value Report

The company invests in the local areas and the communities that are part of it. In the production areas it provides training and advances best agronomic practices, to reduce the most significant impacts of farming and acting with full respect for biodiversity and the ecosystems. In addition, it has specific incentive and recognition programs in place for producers that promote quality and environmental sustainability, such as the Ernesto Illy International Coffee Award, the Premio Ernesto Illy de Qualidade do cafe para Espresso and the Clube illy do Cafe.

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illy Sustainable Value Report

Back to the Future
Starting from the Present

illycaffè considers environmental value and the protection of resources to be a key factor to promote in the general approach of business activities and considers the preservation and sustainable development of the territory in which it operates to be of paramount importance, in view of community rights and future generations Starting from this postulate, illycaffe is driven by the principles of eco-sustainability and is committed to minimizing the impacts of its activities by using the best technologies available in the marketplace. 100% of the electricity comes from renewable sources and therefore the carbon emissions from this energy source have been zeroed out.

illy Sustainable Value Report

illycaffe manages its own direct impact on the ecosystem and promotes the use of sustainable and responsible practices at all levels of the supply chain. Thanks to a certified environmental management system, the company has improved its performance over the years in terms of energy efficiency and sustainable waste management.

HIGHLIGHTS 04
illy Sustainable Value Report
illy Sustainable Value Report

Raw materials

illycaffe’s main raw material is green coffee. Every years the company purchases hundreds of thousands of Arabica coffee bags from producers in Latin America, Africa and South-East Asia. The company acknowledges that the production of this raw material accounts for a considerable portion of its indirect environmental impact and monitors every phase of the procurement process, from the heart of the plantations to shipping to the roasting plant.

illy Sustainable Value Report

HIGHLIGHTS 05
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ABOUT NATURAL CAPITAL

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